Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2022 their Balance Sheet was as follows:

Balance Sheet of Sonu, Monu and Ashu as at 31st March, 2022

Liabilities Amount
Assets Amount
Creditors 35,000 Bank 22,000
General Reserve 25,000 Stock 25,000
Debtors       20,000
Capitals : Less: Provision
for bad debts       2,000

Sonu       50,000 Furniture 15,000
Monu       30,000 Land and Building 80,000
Ashu       20,000 1,00,000
Total 1,60,000 Total 1,60,000

On the above date, the firm was dissolved on the following terms:

(i) Land and Building realised for ₹85,000, Furniture realised for ₹6,000 and Debtors realised full amount.
(ii) Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹3,000.
(iii) Monu agreed to bear all realisation expenses. For his services Monu was paid ₹2,000. Actual expenses on realisation amounted to ₹2,200.
(iv) Creditors were paid at 2% less.

Prepare Realisation Account.

Marks-5, CBSE:2021-22/Term-2/Zone-4/Set-1/Q-8*

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